ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has cleared Implementation Committee report agreed with the Independent Power Producers (IPPs) for payment of Rs403 billion and directed to present the report to the federal cabinet meeting for final approval Tuesday (Feb 9).
A meeting of the ECC presided over by Finance and Revenue Minister Dr Abdul Hafeez Shaikh was briefed by the Ministry of Energy about the details of the implementation committee report regarding conversion of Memorandum of Understandings (MoUs) into agreements with the IPPs for clearing outstanding payables.
Dr Shaikh has recently stated that agreement with the IPPs would save Rs936 billion to the government over a period of time and the government would make payment to the IPPs in two installments - 40 percent immediately, and remaining in August 2021.
The implementation committee has agreed the payment mechanism with the 46 IPPs to clear the outstanding dues as on 30th November 2020.
The ECC commended the efforts made by the Implementation Committee and acknowledged the input of all concerned including Federal Minister for Energy, Federal Minister for Planning, the SAPM on Power, the Finance Division, chairman Federal Land Commission, the SAPM on Revenue, he governor SBP, etc in working out a viable payment mechanism with the IPPs.
The agreement would save approximately Rs836 billion over a period to the government over the average life of the projects.
The ECC approved the report of the Implementation Committee with a direction to present the same before the Cabinet for final approval.
The ECC meeting was also presented a summary by the FBR regarding procurement of Video Analytics Surveillance system (VAS) for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister.
The ECC approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR. The meeting was attended by Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Adviser to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, governor State Bank Reza Baqir, the chairman FBR, and the chairman Board of Investment.
Copyright Business Recorder, 2021